Eurotunnel chief quits in boardroom row

The disarray at Eurotunnel deepened today as the struggling Channel tunnel operator's chief executive resigned after falling out with the chairman.

Jean-Louis Raymond said he was leaving following a disagreement with Jacques Gounon over how to tackle the company's debt.

"The chairman of Eurotunnel has publicly criticised Eurotunnel management over the last few weeks for purely political reasons," Mr Raymond said in a statement.

"The fact that the chairman has chosen to voice publicly his criticism ... is quite unacceptable, can only be against the company's interests and has forced me to draw my own conclusions."

Mr Raymond's move came just a week before a shareholder meeting at which Mr Gounon and his colleagues are expected to face attacks over the way the company is trying to restructure its £6.4bn debt. If Eurotunnel is unable to reach an agreement with its banks it faces bankruptcy in 2007, when it must start repaying £4bn.

In April, the company and its creditors agreed a legal framework for talks to reduce its debt.

Discussions have since stalled as Mr Gounon has taken a stronger pro-shareholder view before the meeting, calling for creditors to wipe out £3.8bn of debt without compensation.

Today's resignation is the latest management upheaval since the company's British-led management was ousted last year in a rebellion by mainly French small shareholders.

Nicolas Miguet, the businessman who helped orchestrate the overthrow, is now leading a bid to oust Mr Gounon at next week's annual meeting.